Cal. Civ. Code § 0770-03-02-.05

(1) Timely Performance of Work.

(a) After execution of the Agreement, the Owner must promptly proceed with the rehabilitation
work as provided in the Agreement. In the event work is not so commenced, diligently
continued, or completed, the Agency will have the right to rescind the Agreement, or take other
appropriate action. Although extensions of time may be granted, no increases in Contract Rents
may be granted for delays.

(2) Inspections.

(a) Tennessee Housing Development Agency will inspect, as appropriate, during rehabilitation to
ensure that work is preceding on schedule and is being accomplished in accordance with the
terms of the Agreement, particularly that the work meets the acceptable levels of workmanship
and materials specified in the work write-up.

(3) Changes.

(a) The Owner must submit to the Agency for approval any changes from the work specified in the
Agreement which would alter the design or the quality of the required rehabilitation. The
Agency may condition its approval of such changes on a reduction of the Contract Rents. If
changes are made without prior Agency approval, the Agency may determine that Contract
Rents must be reduced or that the Owner must remedy any deficiency as a condition for
acceptance of the unit(s).

(b) Contract Rents may not be increased except in accordance with provisions of these rules.

(4) Vacancies from Execution of Contract to Initial Occupancy.

(a) At the time the Contract is executed, the Owner will be required to submit a list of dwelling
unit(s) leased as of the effective date of the Contract and a list of the unit(s) not so leased, if any.
The Owner will be entitled to housing assistance payments for any unleased unit(s), pursuant to
0770-3-1-.11, only if the Owner has fully complied with the requirements of that section and of
this paragraph.

(5) Initial Occupancy.

(a) In filling a vacant unit(s) which is being rehabilitated under the Agreement, the Owner must
select from those Eligible Families on the Agency waiting list. The Agency will refer Eligible
Families to the Owner for this purpose.

(b) In order that the unit(s) might be promptly occupied, 60 days prior to the scheduled completion
of the rehabilitation, or the date the Agreement is executed, whichever is later, the Owner must
notify the Agency of any unit(s) which it is anticipated will be vacant on the anticipated effective
date of the Contract. The Agency will notify one or more appropriate size Families on its waiting
list of the availability of the unit.

(c) Since the Owner is responsible for tenant selection, the Owner may refuse any Family provided
that the Owner does not unlawfully discriminate. Should the Owner reject a family, and should
the Family believe that the Owner’s rejection was the result of unlawful discrimination, the
Family may request the assistance of the Agency in resolving the issue. If the issue cannot be
resolved promptly, the Family may file a complaint with HUD and the Agency may refer the
Family to the next available unit.

Authority: T.C.A. §13-23-115(18). Administrative History: Original rule filed July 13, 1982; effective August 12,
1982.